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Pioneer Resources raises funds for nickel drilling in Albany-Fraser Orogen

Last updated: 09:30 16 Feb 2015 GMT, First published: 10:30 16 Feb 2015 GMT

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Pioneer Resources (ASX:PIO) has raised $500,000 through a placement of 27.778 million shares at $0.018, and has also launched a Share Purchase Plan at the same price to raise up to $750,000.

Pioneer also held $2.2 million in cash at the end of December 2014.

The new funds will be initially allocated to the Fairwater Nickel Project in the Albany-Fraser Orogen, and for near-mine drilling at the Blair Nickel Mine Extensions Project.

The timing of these capital raisings follow the receipt of the final approvals needed to commence ground disturbing work programs at the highly prospective Fairwater, where a Program of Work assessment was approved on 6 February 2015.

Following the approval an EM crew commenced work.

David Crook, managing director, commented: “We are delighted with the response from new investors to the company’s share placement, which we see as strong validation for our ongoing, targeted exploration programs.

"We are also pleased to offer the Share Purchase Plan to existing eligible shareholders on the same terms as the placement, providing the opportunity to increase share holdings in the company as it enters a very active exploration phase."

In January, the company was awarded key Fairwater tenements including E63/1665 over the priority FWNi003 nickel target.

Approval for the Program of Work is expected in late February.

This will allow the company to establish access tracks, complete ground EM surveys and start rotary air blast drilling.

Pioneer also plans to start the next phase of drilling at its Blair Nickel Mine to confirm the presence of previously unrecognised ultramafic lava channels which may host nickel sulphide mineralisation.

     
Fairwater Nickel Project

The Fairwater Nickel Project, located 100 kilometres and 130 kilometres southwest of Sirius Resources’ (ASX:SIR) Nova and Bollinger nickel discoveries, consists of three granted exploration licences and three licence applications.

Aeromagnetic imagery and follow-up soil geochemistry has generated targets considered prospective for the discovery of nickel sulphide mineralisation.

Programs of detailed soil geochemistry will be carried out on receipt of the PoW over the FWNi001 and FWNi003 targets while about 5,000 sites have been planned for sampling.

Other field programs to be initiated during the first quarter of 2015 include:

- Up to five traverses of moving loop EM to cover the FWNi003 target;
- Concurrent drilling of 99 aircore holes to confirm geology of the interpreted mafic intrusion suite;
- The resulting geological model will be further tested by fixed loop EM surveys and reverse circulation drilling;
- Reverse circulation holes will act as a platform for downhole EM surveys; and
- Drilling to test directly for mineralisation.

The targeted geological unit at Fairwater is the Proterozoic-aged (1.8-1.65 Ba) Biranup Zone rocks of the Albany-Fraser Orogen, where it is emplaced in close proximity to Archaean aged (>2.5 Ba) Yilgarn Craton rocks.


Blair Nickel Project

The Blair Nickel Project covers 43 square kilometres and is located 30 kilometres southwest of Kalgoorlie.

Pioneer plans to commence drilling this month to confirm the presence of previously unrecognised ultramafic lava channels which may host nickel sulphide mineralisation in close proximity to the historical Blair Nickel Mine.

The stratigraphic drill holes will test an updated geological model for the near-Blair Mine area, the result of a process which has drawn together elements from the extensive mine drilling and mapping database, recent geological mapping, geochemistry and the interpretation of high resolution aeromagnetic data.

The drilling program includes a minimum of 50 rotary air blast holes to pinpoint the base to the ultramafic rock sequence followed by about 2,000 metres of reverse circulation drilling to test the nature of the basal contact along the 04 and 05 surfaces and an EM conductor up-plunge of the Area 57 nickel shoot.

A successful program will confirm the presence of fertile komatiite channels and will act as a platform for downhole EM surveys to test for conductive rocks which may include nickel sulphides.

The Blair Mine has a previous remnant and unmined Resource of 222,710 tonnes at 2.92%, or 6,510 tonnes of contained nickel.

In addition, the company had dropped seven mining and exploration tenements following a review of nickel and gold targets, resulting in an annual expenditure commitment reduction of $433,000 and actual savings of $107,000 in rents and rates.


Juglah Dome Gold and Base Metal Project

Pioneer also holds some prospective gold interests, which includes the Juglah Dome Project which covers 157 square kilometres, and is located about 57 kilometres southeast of Kalgoorlie.

Pioneer’s recent exploration programs have identified a 4 kilometre long zone that is considered to be prospective for volcanogenic massive sulphide lead-zinc mineralisation.

To date 2,180 soil geochemistry samples taken from the Dingo Dam Prospect area.

Proof of concept drilling confirmed the project’s prospectivity for VMS-styled Pb-Zn mineralisation.

Traverses of shallow RAB drilling are planned to provide regolith geochemistry, and samples for NIR spectral alteration mapping.

Integrated results are expected to produce drill targets.


ACRA Gold Project 

Pioneer has also been busy at the ACRA Gold Project, with 2,951 soil geochemistry samples taken from Kalpini Hill, Jubilee Gift and Evelyn Gladys prospects.

Following the acquisition of improved aeromagnetic data, Southern Geoscience Consultants has commenced a study to identify structural zones that might act as a host to gold mineralisation.

The Acra Gold Project is located 60 kilometres east of Kalgoorlie and is believed to have the capacity to yield a large gold deposit that will benefit from nearby mining services.


Analysis

Pioneer Resources will use the new capital raised on the company's ongoing exploration programs at the Fairwater Nickel Project in the Albany-Fraser Orogen, and at the Blair Nickel Mine Extensions Project.

Pioneer also held $2.2 million in cash at the end of December 2014.

The company is entering an active exploration phase, which key price drivers in the March quarter 2015 including:

- EM crew currently surveying the FWNi003 Nickel Sulphide Target at the Fairwater Nickel Project in the Albany-Fraser Orogen.

- Detailed soil geochemistry also in progress at Fairwater Project nickel targets.

- Drilling at Fairwater and Blair Nickel Mine Extensions Project in Eastern Goldfields due to commence this month.

 

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